FJ Capital Management LLC Makes New Investment in PulteGroup, Inc. $PHM

Key Points

• FJ Capital Management opened a new position in PulteGroup during the fourth quarter, buying 31,075 shares worth about $3.64 million.
• PulteGroup’s latest quarterly results were mixed: it posted $1.79 EPS, narrowly missing estimates, while revenue of $3.41 billion slightly topped expectations but fell 12.4% year over year.
• The company’s board approved a $1.5 billion share repurchase plan, and PulteGroup also announced a quarterly dividend of $0.26 per share, payable July 2.

FJ Capital Management LLC bought a new position in PulteGroup, Inc. (NYSE:PHM - Free Report) during the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 31,075 shares of the construction company's stock, valued at approximately $3,644,000.

Several other hedge funds also recently bought and sold shares of the company. Golden State Wealth Management LLC raised its holdings in PulteGroup by 18.3% in the fourth quarter. Golden State Wealth Management LLC now owns 484 shares of the construction company's stock worth $57,000 after purchasing an additional 75 shares during the period. Evergreen Capital Management LLC raised its holdings in shares of PulteGroup by 2.8% during the second quarter. Evergreen Capital Management LLC now owns 2,875 shares of the construction company's stock worth $304,000 after acquiring an additional 78 shares during the period. Stephens Inc. AR raised its holdings in shares of PulteGroup by 3.5% during the fourth quarter. Stephens Inc. AR now owns 2,350 shares of the construction company's stock worth $276,000 after acquiring an additional 80 shares during the period. Perigon Wealth Management LLC raised its holdings in shares of PulteGroup by 3.6% during the fourth quarter. Perigon Wealth Management LLC now owns 2,672 shares of the construction company's stock worth $313,000 after acquiring an additional 92 shares during the period. Finally, Opal Wealth Advisors LLC raised its holdings in shares of PulteGroup by 4.8% during the fourth quarter. Opal Wealth Advisors LLC now owns 2,169 shares of the construction company's stock worth $254,000 after acquiring an additional 99 shares during the period. 89.90% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at PulteGroup

In other news, COO Matthew William Koart sold 7,457 shares of PulteGroup stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $120.00, for a total value of $894,840.00. Following the completion of the transaction, the chief operating officer owned 28,100 shares of the company's stock, valued at $3,372,000. This trade represents a 20.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Lila Snyder sold 3,339 shares of PulteGroup stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $117.18, for a total transaction of $391,264.02. Following the completion of the transaction, the director directly owned 3,540 shares of the company's stock, valued at approximately $414,817.20. This trade represents a 48.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.75% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently commented on PHM shares. Barclays dropped their price objective on shares of PulteGroup from $115.00 to $112.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 8th. Zacks Research raised PulteGroup from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. Weiss Ratings cut PulteGroup from a "buy (b-)" rating to a "hold (c)" rating in a research report on Monday, April 27th. The Goldman Sachs Group upped their price objective on PulteGroup from $133.00 to $142.00 and gave the stock a "neutral" rating in a research report on Friday, April 24th. Finally, Bank of America reduced their price objective on PulteGroup from $145.00 to $140.00 and set a "buy" rating for the company in a research report on Monday, April 20th. Ten analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $140.71.

PulteGroup Stock Down 0.7%

Shares of PHM stock opened at $123.13 on Friday. The firm's fifty day moving average price is $119.61 and its two-hundred day moving average price is $124.18. PulteGroup, Inc. has a 1 year low of $98.27 and a 1 year high of $144.49. The firm has a market capitalization of $23.45 billion, a P/E ratio of 11.91, a PEG ratio of 1.56 and a beta of 1.20. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.14.

PulteGroup (NYSE:PHM - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The construction company reported $1.79 EPS for the quarter, missing analysts' consensus estimates of $1.80 by ($0.01). PulteGroup had a net margin of 12.14% and a return on equity of 16.41%. The firm had revenue of $3.41 billion during the quarter, compared to the consensus estimate of $3.40 billion. During the same period last year, the business earned $2.57 EPS. The business's revenue was down 12.4% on a year-over-year basis. On average, equities analysts predict that PulteGroup, Inc. will post 10 EPS for the current fiscal year.

PulteGroup declared that its Board of Directors has approved a share repurchase plan on Thursday, April 23rd that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the construction company to buy up to 6.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

PulteGroup Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Tuesday, June 16th will be given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Tuesday, June 16th. PulteGroup's dividend payout ratio (DPR) is 10.06%.

PulteGroup Profile

PulteGroup, Inc NYSE: PHM is a U.S.-based residential homebuilder that designs, constructs and sells single-family homes and develops master-planned communities. The company operates multiple national and regional brands that target different buyer segments, including first-time buyers, move-up buyers and active-adult customers. Its operations encompass land acquisition and development, home design and construction, community amenities and ongoing customer service and warranty programs.

PulteGroup markets homes under several well-known brands, such as Pulte Homes, Centex and Del Webb, among others, offering a range of product types from entry-level detached homes to larger, higher-end residences and age-restricted active-adult communities.

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